With the New Year comes lots of talk about the Dogs of the Dow. You can read more about the theory here and here but it is simply annually buying the 10 stocks in the Dow (INDEXDJX:.DJI) with the highest dividend yield. The thinking goes the companies with the highest yield (dividend relative to stock price) are near the lows in their business cycle and should see strong price appreciation. Normally the highest yielding names are also some of the worst performers – as yield and price are inversely related. So does it make sense to buy previous laggards? ...